DAMAGES AND REMEDIES — Damages for Breach of Contract — Condition Precedent — Existence of Enforceable Contract
Ratio Decidendi
Per Chukwuma-Eneh, JSC, in Best (Nig) Ltd v. Blackwood Hodge (Nig) Ltd & Ors (2011) NLC-123-31-1999(SC) at p. 24; Paras C—D:
"An award of damages usually follows a breach of contract so as to compensate the injured party for loss following naturally and within the contemplation of the parties. Damages is attached to a breach following an enforceable contract. Where there was no such contract an award of damages by any Court is not only a misconception but a contradiction in terms as such award is based on a wrong principle of law."
Explanation / Scope
This principle establishes that damages for breach of contract require an enforceable contract; where there is no contract, an award of damages is a misconception and based on a wrong principle of law. The principle applies in contract claims. It ensures that damages are only awarded where a contract exists. The principle reflects the precondition for damages. It prevents awards without a contract. The court must require an enforceable contract. The principle provides guidance on damages for breach of contract.